Acct 284 Worksheet

Acct 284 Worksheet

1.List 6 T-account:

(Which 3 accounts increase with debit?)

2. 4 characteristics for Journal Entry

3. Definition of Current Ration

(eg, Pepsi is 1.77 and Coke is 2.5. Which company is better?)

4. Razor Corporation collected $500 due from a customer for a prior purchase. The journal entry to record this transaction is:

Debit Credit

A) Accounts Receivable $500

Cash 500

B) Sales Revenue $500

Accounts Payable 500

C) Cash $500

Accounts Payable 500

D) Cash $500

Accounts Receivable 500

5. Which of the accounts increases with a CREDIT?

A) Dividends

B) Cash

C) Cost of goods sold

D) Accounts payable

6. Issuing common stock for cash would

A) increase assets and increase stockholders' equity.

B) decrease income and assets.

C) decrease assets and decrease liabilities.

D) increase assets and increase liabilities.

7. Jordan Tools reported a current ratio of 1.65 for the current year while their competitor Air Tools reported a current ratio of 1.42. Which of the following statements is TRUE?

A) Jordan Tools current ratio indicates that it is more liquid than Air Tools.

B) Jordan Tools may have a harder time having cash available for current obligations than Air Tools.

C) Jordan Tools has fewer current assets for each dollar of current liabilities relative to Air Tools.

D) Jordan Tools appears to be less profitable than Air Tools.

8. A sale to a customer made on account would:

A) increase assets, increase revenues, and decrease stockholders' equity.

B) increase assets, decrease liabilities, and increase net income.

C) decrease assets, increase net income, and increase stockholders’ equity.

D) increase assets, increase revenues, and increase stockholders' equity.

9. Which of the following would NOT result from the payment for utilities for the current month?

A) expenses would increase

B) net income would increase

C) assets would decrease

D) stockholders’ equity would decrease